Setting: Kicked back, relaxed, and talking 1/18
Birddog: “How did Admiral Toys come to be?”
Jason: “My brother, Jim, owned a retail store that sold many of the products you collect today. He wanted to look into manufacturing and negating the cost of purchasing it from a manufacturer or distributor. It is hard on the retail store because many of the models sold to small retailers are priced at a few dollars under what it could be purchased at a mass-retailer. After you added shipping from the manufacturer or distributor you were trying to compete with a price that you would lose money if you sold it at that price. One thing led to another and we decided to go into manufacturing.”
Birddog: “What is your background, and how did you become part of Admiral Toys?”
Jason: “I have an unconventional upbringing to the toy industry. I started out my professional life in the District Attorney’s Office. I worked on the Felony Drug team and spent my days in the courtroom. I then worked for the Office of the Independent Counsel, Kenneth W. Starr. That was an amazing experience. I felt like I was part of history. Then I moved to D.C. and worker for the U.S. Department of Justice. Had a good time but missed the courtroom and it felt like an office job. My wife is also an attorney and got a nice offer from a firm downtown. So I moved to Houston. I was going to start with the District Attorney’s office in Harris County when I got the call from my brother. The private sector sounded pretty good at the time so I gave it a shot. Three years later and here we are.”
“The nice thing about starting a new company is that it is 10 percent inspiration and 90 percent legal work. I was right for the task and learned a lot about the industry over the last couple of years. I spend about a month and a half a year in China. The whole time from 8 a.m. until 2 a.m. the next morning is spent in a boardroom in China or in the factories. You see a lot and you learn a lot.
Birddog: “Why hasn’t Admiral Toys moved into mass-retail?”
Jason: “We have looked into the mass-retail market. In fact we have received an offer.
But we have set ourselves up to be the small guy’s manufacturer. As I have already mentioned, we came from small retail roots. We know how hard it is to make a dollar or two in this business. We also know how many small retailers there are in the world. We are doing just fine with our line of toys in the small retail sector.”
“There is an inherent competition between the small retailer and mass-retailer. Unfortunately the small retailer cares what is happening on the mass-retailers isles, but the mass-retailer couldn’t care less what is happening to the small retailer. So I guess you can say it is a very lopsided competition. We do care what happens to the smaller outfits. Their loyalty to our line is growing. If they want to sell a product without competing with the mass-retailer, they will use Admiral Toys.”
Birddog: “Will Admiral Toys ever move into mass-retail?”
Jason: “Probably, but it will not be anything that we are currently offering to the small retailer sector. We have been working on branching out our line of toys. We do not want to just focus on the military industry and aircraft/tanks. We have a couple of things working that I am not at liberty to discuss. However, if you are a retailer reading this interview, rest assured, we are not going back on our word. You will not be competing with mass-retail on our current line of toys.”
Birddog: “Ok, I have to ask, What is coming out next?”
Jason: “Now you know I cannot answer this question. But, if you look at everything I have said today you will notice a trend. The trend has a non-competition feel to it. We do not think it is good for the market to repeat aircraft and have no intentions of producing aircraft that we know will be produced by another company.
In fact let me go off on a tangent for a minute. We had the F-86 in preproduction for over a year before we heard that another company was producing their version. We chose the F-86E because we thought it would be the last model another company would every think of producing. At the time we started getting into the business the trend was WWII and big modern jets. We thought there would be plenty of room for us to produce a Korean War bird.
As far as the ME 262 goes… we love the model and wanted to produce it. We heard that another company wanted to produce it but saw nothing for several years. We thought they probably chose not to do it. What are we going to do, call them up and ask if they have intentions of producing it? Of course not, we wanted to make the model and I am glad we did. You will love it. In fact the second paint scheme’s master model has been approved and will be close behind the “White 8.” Sorry I cannot give information regarding the second paint scheme. You will have to wait.”
Birddog: “You had mentioned in a post on the Direct from the Source forum that you wanted to work a deal with the other manufactures in regards to producing models. What ever happened to that?”
Jason: “Yes I did try to work out a deal. The short of it was this: The manufacturers would get together and talk about what they wanted to produce. They would make their wish list. If this list did not interfere with another manufacture’s list… no problem. They would agree to give that manufacturer two years of sales on that model before they could produce it themselves. If there was a conflict on the wish list it would go to lottery, a good old fashion putting the names in a hat idea. What was drawn was what you got to produce. There would be a legally binding agreement to prevent back stabbing.”
“This doesn’t have to be for every aircraft. However, I think it would be great for the larger aircraft that you want produced.”
“In fact, I think this is the best way for certain aircraft to be produced. For example the A-10: “The A-10 Hunger Strike,” I know this thread alone has prevented Admiral Toys from producing an A-10.”
Birddog: (In a Homer Simpson voice slapping his forehead) “DOIH!!!”
Jason: “Why? Look at history. Everyone wanted an A6M2, Zero. There was begging and pleading for that model on the forums. Every manufacturer thought… well lets give them one. They all want one. You know the rest of the story. 21st tabled theirs, we indefinitely tabled ours and BBI made a lot of money. The early bird gets the worm, but, the cost of getting these models to market is so high that the early bird sometimes doesn’t want to get out of bed. If all three companies introduced an A-10 around the same time, it would kill the market. Sure it would be great for the fans that want an A-10, but it would mean monetary disaster for all three companies. There is no room to split profits on the big planes. P-51s, Corsairs, yes there are enough people interested. But are there enough people to purchase an A-10 with over three feet of wingspan, and a hundred dollar price tag to support all three companies producing it? Probably not. So you can see that if you get caught in a race for sales like all three companies almost did with the A6M2 it is a lose, lose situation even if you are the first to market. And I promise you the A6M2 was going to be a heck of a lot cheaper to produce then an A-10.”
Birddog: “So what happened to your proposal?”
Jason: (Jason had a bit of sarcasm in his tone.) “I talked to 21st on the phone and made the offer. They said they would get back to me. It’s been quite awhile. I am starting to think they don’t like the idea.”
“I haven’t spoken to BBI because all three manufacturers would have to agree before this would work.”
“It is a shame because I really think there is room for cooperation in this industry. It would be great you and the manufactures.”
Birddog: “Admiral Toys Incorporated has a great customer service program in place. How is it working out for you?”
Jason: (Little laughter in his voice) “Yes… customer service… the bright side of our day. We do have a wonderful customer service program. We have about 1.5 to 2 percent of our models having a complaint. I do not want to point figures, but, about 85 percent of that 1.5 – 2 percent is from this forum. You expect more from your models then the average customer. We can handle it, but some of the complaints have been very picky. I actually have one of the returned models displayed in my own office.”
“Do not get me wrong, there have been some atrocities to the toy industry to have come out of China, but for the most part we have a pretty good system set up. We take the issues one at a time and deal with them on a case by case basis.”
Birddog: “Here’s a question some board members ponder from time to time, How do you choose what model to produce next?”
Jason: “I would like to tell you that there is a formula or in depth stratification of the market, but it is very simple, we produce the models we like and think that you would like as well.”
“There are some things that we take into consideration. The cost of production is the major factor in determining what will be made. Then we look at possible repaints. Is there enough “different” paint schemes to keep the consumer interested? Unfortunately there has been a trend where people are only purchasing one. Not going back for the second paint scheme. This is not good for the manufacturer and hurts you in the long run. These models are not paid for in the first production run. We need repaints to continue getting more models to market. So get out there and by the CL-13.”
Birddog: “How are sales on the CL-13?”
Jason: “They are picking up. The closer the model comes to being in stock by our retailers the more interest a model receives. This industry used to have a solid preorder system in place that help manufacturers to judge interest and adjust production numbers, but long delays by manufacturers have killed the preorder market. Customers do not know when to believe you when you say you are coming out with a model. It is unfortunate because it was a useful system.”
Birddog: “What would you like to say to the members on this board or people who read this interview?”
Jason: “A simple thank you…. We really love what we are doing. Is it for everyone? No. But reading the positive comments on this forum makes us work harder to impress and makes the stress and endless hours worth it. Everyone at Admiral Toys cares about each and every customer. Our customer service reflects that admiration for you.
I do stop by this forum almost every morning. I read the news from the previous day and try to answer the questions as soon as possible. Just because you did not receive an answer doesn’t mean your question was not read.
Thank you again for your interest in Admiral Toys. The next couple of months should be interesting. (Jason said with a wink)”
I want to send out a TEXAS size THANK YOU to Jason for taking the time out of his busy schedule to do this interview. I can say without a doubt that after talking with Jason, I feel we are going to be in for some fantastic and jaw dropping surprises from Admiral Toys. The 1/18 scale hobby is going to keep getting hotter with them in the picture.
